{"id":31262,"date":"2025-06-18T21:18:15","date_gmt":"2025-06-18T21:18:15","guid":{"rendered":"https:\/\/financialrush.com\/?p=31262"},"modified":"2025-06-18T21:18:15","modified_gmt":"2025-06-18T21:18:15","slug":"foreign-treasury-holdings-remain-near-record-high-despite-tariff-turmoil","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31262","title":{"rendered":"Foreign Treasury holdings remain near record high despite tariff turmoil"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Your guide to what Trump\u2019s second term means for Washington, business and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=8bf91b8e-cffb-4c70-b849-5e7edc6b9f23&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Foreign investors\u2019 stockpile of US government debt fell only modestly in April despite turbulence in the Treasury market driven by Donald Trump\u2019s \u201cliberation day\u201d tariff announcement. <\/p>\n<p>International holdings fell $36.1bn in April from the previous month to about $9tn, just shy of the record high hit in March, according to a report from the Treasury department on Wednesday.<\/p>\n<p>Trump\u2019s April 2 \u201cliberation day\u201d announcement of steep levies on trading partners ignited major market ructions, sending long-term US bond yields soaring. The move only partially reversed after the president paused the <a href=\"https:\/\/www.ft.com\/trump-tariffs\" data-trackable=\"link\">tariffs<\/a> a week after he threatened to impose them. <\/p>\n<p>The muted change in foreign holdings in April suggests the exodus of investors out of longer-dated <a href=\"https:\/\/www.ft.com\/us-treasury-bonds\" data-trackable=\"link\">Treasury bonds<\/a> in April was driven more by domestic investors than those abroad. The modest retreat is still notable, given that Treasury debt tends to function as a haven asset during moments of global turmoil.<\/p>\n<p>Foreign investors own roughly a third of all Treasury bonds: their demand for American debt has allowed the US to fund its government for decades, without meaningfully raising taxes or cutting fiscal spending. <\/p>\n<p>China\u2019s recorded holdings of Treasuries decreased to the lowest level since 2009, at $757bn. However, Belgian holdings of Treasuries, which are seen as a proxy for Chinese holdings offshore, rose. The biggest decline came from Canada, which shed $57.8bn of Treasuries. Japan and the UK, the two biggest holders of US debt, added to their stockpiles. <\/p>\n<p>The data from the Treasury department does not adjust for changes in market value of the securities over the course of the month. <\/p>\n<p>There has been some evidence of a retreat from Treasuries in the weekly Federal Reserve\u2019s custodial data, said Meghan Swiber, US rates strategist at Bank of America.\u00a0<\/p>\n<p>The custodial data, which measures Treasuries held by foreign officials at the Fed, suggests foreign institutions have sold roughly $63bn worth of US debt since late March, according to Swiber. The continued sales over the course of May and June could mean the next sets of TIC data [Treasury international capital] could show more outflows.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/8bf91b8e-cffb-4c70-b849-5e7edc6b9f23\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington,&hellip;\n","protected":false},"author":5,"featured_media":31263,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-31262","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31262"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/31263"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}